Revolving Loan Program
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| Southwest Initiative Foundation provided loan funding to RD Machine, Inc. in Hutchinson, Minn. |
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The Southwest Initiative Foundation’s Revolving Loan Program is designed to support small business growth throughout the 18-county southwest Minnesota region. Businesses that create and retain quality employment by generating new wealth and diversifying the regional economy are eligible.
- Business loans generally range from $25,000 to $200,000.
- Loans may be used for machinery and equipment, inventory, working capital, and in some instances, real estate.
- Interest rates are fixed at one percent under the Prime Rate at the time of loan approval, with a six percent floor.
- The loan term is based on the life of the asset. Generally, but no always, loan maturities are five years. Loans may have extended amortizations if the financed asset warrants. Amortizations beyond five years will require a balloon payment.
- Loans must have adequate collateral and may be subordinate only to the interest of the primary lender bank.
- Loan recipients will be charged a one percent loan origination fee plus all legal costs associated with the closing of the loan.
Applicants are encouraged to contact us at an early stage in project development to discuss the feasibility of support for their projects. A loan officer will endeavor to provide an indication of the project’s eligibility and to suggest factors which should be considered to maximize the potential for developing a viable proposal.
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